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SLM, altra situazione critica, con rating che scendono verso livelli ai quali diviene assai arduo rifinanziare il debito in scadenza per poi investire prestare profittevolmente.
E tutto questo nonostante i tassi allo zero per cento.
Moody's reviews SLM for possible downgrade
New York, August 27, 2009 -- Moody's Investors Service placed the long-term ratings of SLM Corp. (senior unsecured Ba1) on review for possible downgrade.
The rating action reflects Moody's continued concerns regarding SLM's earnings and cash flow generation as the company transitions to a potential post-FFELP lending environment. Additionally, the company faces significant uncertainties related to the political and consumer lending environment for student lenders. These issues could challenge the company's liquidity and funding position as it nears large unsecured debt maturities in 2010 and particularly in 2011. Today's action reflects Moody's ongoing analysis and concern that these key issues could have more adverse effects on SLM's credit profile than is reflected in the company's current ratings.
Moody's notes that SLM remains a significant force in the education lending and servicing business. The company has benefited from access to the secured funding markets in recent months given U.S. government support through its TALF program, the DOE Participation Program, and the DOE Straight A Funding conduit program. As well, SLM has a significant student loan servicing franchise that is a platform for a potential future non-lending oriented business model.
During the review period Moody's will re-evaluate SLM's future business strategy, core earnings and cash flow generation capability, and borrowing capacity resulting from this cash flow generation and the potential monetization of its unencumbered assets. As Moody's has noted, cash flow generation is taking on increasing importance in SLM's credit profile because the firm's unsecured debt balance exceeds its unencumbered earning assets.
Therefore, SLM will need to generate profits and cash flow in order to service and ultimately repay some of its debt, as opposed to generating the required cash through asset liquidation. This will be a key area of focus, particularly given the potential major business model transition it faces, during Moody's review.
During the review Moody's will also re-assess the potential structural subordination that could arise for SLM's unsecured creditors as it monetizes assets through secured financing to meet debt maturities; as well as SLM's capital adequacy including its ability to replenish capital from earnings generation and retention.
The last rating action on SLM was on May 13, 2009 when Moody's downgraded the company's ratings and assigned a negative outlook.
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Headquartered in Reston, VA, SLM is the nation's leading provider of saving- and paying-for-college programs. The company manages approximately $188 billion in education loans and serves 10 million student and parent customers
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